Olympics tells ICANN to abandon new TLD launch or get sued

The International Olympic Committee has threatened to sue ICANN unless it gives IOC trademarks special protection in its new top-level domains program.
The IOC’s critique of ICANN’s new Applicant Guidebook is the first to be filed by a major organization in the current public comment period.
The organization has accused ICANN of ignoring it, preferring instead to take its policy cues from the domain name industry, and said it should “abandon its current timeline” for the launch.
ICANN currently plans to start accepting TLD applications May 30, 2011.
Calling the guidebook “inherently flawed”, the IOC’s director general Urs Lacotte wrote:

If these critical issues are not fully resolved and ICANN chooses not to place the Olympic trademarks on the reserved names list, then the IOC and its National Olympic Committees are prepared to employ all available legislative, regulatory, administrative and judicial mechanisms to hold ICANN accountable for damage caused to the Olympic movement.

(That language looks like it could have been cut-n-paste from a separate letter from the financial services industry, which I reported on last week).
The IOC said that it has opposed the new TLD program 11 times – asking for its trademarks to be placed on the AGB’s reserved strings lists, but received no response.
Special pleading? Perhaps, but the IOC’s trademarks are already specifically protected by legislation in numerous countries, including the US, UK, Canada and China.
The IOC also wants stronger trademark protection mechanisms, such as mandatory typosquatting protections in sunrise periods and extending dispute proceedings to registrars.
Expect many more such missives to start showing up on the ICANN web site over the next 11 days before the ICANN board of directors meets to approve the AGB in Cartagena.
This may be the last chance many organizations get to ask for the changes they want in the AGB before the first round of new TLD applications opens, and I expect them to seize it with both hands.

Minds + Machines to raise $4.7m for new TLDs

Top Level Domain Holdings plans to raise £3 million ($4.7 million) in a stock sale to help finance the TLD aspirations of its main business, Minds + Machines.
The funds would almost double the cash reserves TLDH has on tap, which currently amount to $5.5 million, according to StockMarketWire.com.
Recently appointed CEO Antony Van Couvering said in a statement that ICANN’s recent decision to allow registries and registrars to vertically integrate had a bearing on the decision to raise funds:

Having reviewed ICANN’s Final Proposed Applicant Guidebook, and in view of the ICANN Board’s historic decision to do away with cross-ownership restrictions between registries and registrars, we believe that the timing is right for additional investment by TLDH. ICANN’s registry-registrar decision means that additional gTLD business models are now viable, and we have already seen a marked increase in interest from prospective new clients. We intend to make sure we have the resources to take advantage of this opportunity.

M+M is already associated with new TLD applications including .gay and .eco, both of which are expected to be contested by other applicants.
TLDH is listed on London’s small-cap Alternative Investment Market. The announcement of the placement can be found here.

Gaming scandal hits Russian domain launch

The launch of Russia’s .РФ country-code top-level domain, widely lauded as a runaway success story, has been tainted by a registrar gaming scandal.
Government antitrust authorities are investigating six registrars over claims that they registered tens of thousands of premium domains in order to auction them to end users, according to local reports.
The registrars in question are thought to have colluded, using each others’ services to register the names, hence the competition probe.
The largest registrar, Regional Network Information Center, aka RU-Center, is alleged to have registered 65,000 domains during the first days of the .РФ launch in order to profit from auctions.
These domains have been frozen pending resolution of the dispute. The registry, Coordination Center for TLD, is thinking about cancelling the registrars’ accreditations.
RU-Center is quoted as saying, laughably, that the premium domains were registered in order to prevent cybersquatting.
In a statement, the registry questions the public good of registering проститутки.рф, which apparently means “prostitute.rf” and is currently asking $190,000 at auction.
The investigation certainly takes the gloss off the launch, which has so far racked up well over 500,000 registered domains and was put forth as case study for internationalized domain names.

Governments still want new TLD morality veto

ICANN’s Governmental Advisory Committee still wants to block “controversial” new top-level domains on morality grounds.
In a letter to ICANN chairman Peter Dengate Thrush, a copy of which I have obtained, the GAC makes it clearer than ever that it wants national laws to play a part in approving new TLDs.
It also suggests that national governments should be able to pre-screen strings before applications are filed, to give applicants “early warning” that they are stepping into controversial waters.
The letter draws the battle lines for what could be some heated debate at ICANN’s meeting in Cartagena next month.
Given that the letter does not appear to have been published by ICANN yet, I will quote liberally.
Under the heading “Universal Resolvability of the DNS”, GAC interim chair Heather Dryden, the Canadian representative on the committee, wrote:

Due to uncertainties regarding the effectiveness of ICANN’s review and objections procedures, a country may feel compelled to block a new gTLD at the national level that it considers either objectionable or that raises national sensitivities.
To date, there do not appear to be controversial top level domains that have resulted in significant or sustained blocking by countries.
The GAC believes it is imperative that the impact on the continued security, stability and universal resolvability of the domain name systems of the potential blocking at the national level of the new gTLD strings that are considered to be objectionable or that raise national sensitivities be assessed prior to introducing new gTLDs.

The letter carries on to say that the GAC will “seek advice from the technical community” on the issue.
Dryden wrote that there should be a “prior review” process that would be able to identify strings that are “contrary to national law, policy or regulation” or “refer to religions, ethnicity, languages or other cultural identifiers that might raise national sensitivities”.
It sounds like the GAC envisions a pre-screening process, before new TLD applications are officially filed, similar to the “expressions of interest” concept that ICANN abandoned in March.
What TLDs this process would capture is unclear. The GAC letter notes by way of example that “several governments restrict the registration of certain terms in their ccTLDs”.
In practical terms, this would raise question marks over TLDs such as “.gay”, which would quite clearly run contrary to the policies of many national governments.
(As I reported earlier this month, the recently relaunched .so registry currently bans “gay”, “lesbian” and related terms at the second level.)
There’s more to be reported on the the implications of this letter, particularly with regards the work of ICANN’s “morality and public order” policy working group and the GAC’s relationship with ICANN in general.
Watch this space.

Afilias to raise .info prices

Afilias has notified ICANN that it plans to raise the maximum annual registration fee for a .info domain next year.
The new price, which will come into effect July 1, 2011, will be $7.42. It’s been $6.75 since November 2008, although the registry often offers deep discounts on new registrations.
Afilias’ contract with ICANN allows it to raise prices by up to 10%, which it appears to be doing in this case.
At least two other other gTLDs have already said they plan to up their maximum prices next year.
NeuStar’s .biz fee will rise by $0.45 to $7.30 in April. PIR’s .org will start costing registrars a maximum of $7.21 at the same time.

Czech people don’t want IDNs

While Russia’s recently launched all-Cyrillic domain names may be going down a storm, it seems the idea of internationalized domain names does not have international appeal.
A survey of businesses and individuals in the Czech Republic shows a serious lack of support for IDNs under the .cz TLD.
A shocking 87% of organizations, along with 62% of internet users, surveyed by registry CZ.NIC said they were not in favor of .cz IDNs.
Czech uses the Latin alphabet, of course, albeit with a liberal dose of diacritics – the local name of the country is Česká Republika – so there’s less of a pressing need for IDNs than in other nations.
The survey results were less surprising to those in the know. Ondrej Filip, executive director of the .cz registry, said in a statement:

The repeated refusal of IDN was not a surprise. The last three surveys had very similar results and there have been no signs over the last two years pointing towards a change in this trend. Quite the opposite – in the long term, the negative attitude of the Czech Internet public toward IDN is growing.

The results showed slightly growing support for IDNs among individual users and growing opposition from businesses. Some objected on the basis that it would make life hard for foreign visitors.

ICANN told to ban .bank or get sued

A major financial services lobby group has threatened to sue ICANN unless it puts strict limitations on “.bank” top-level domains.
BITS, the technology policy arm of the Financial Services Roundtable, said financial domains should be banned from the first round of new TLDs, until rules governing security are developed.
In a November 4 letter to ICANN chief executive Rod Beckstrom, BITS said:

If these critical issues are not fully resolved and ICANN chooses not to defer financial TLD delegation, BITS, its members and its partners are prepared to employ all available legislative, regulatory, administrative and judicial mechanisms.

BITS counts all the major US banks among its membership, as well as many large insurance companies and share-trading services.
The organization is concerned that TLDs such as .bank could lead to consumer confusion and an increase in fraud online if delegated into the wrong hands.
While BITS said that it “prefer[s] a prudent solution”, it has threatened to file “legal complaints in one or more jurisdictions” and to lobby the US Congress for legislation.
It noted that ICANN’s IANA contract, which gives it the power to create new TLDs, expires next August, and said that it may lobby Congress for legislation mandating better security as a condition of the renewal.
BITS and other financial groups have already written to members of Congress, in September, expressing disappointment with the absence of a high-security TLD policy from ICANN and adding:

In recognition of the need for higher levels of security and stability in financial services gTLDs than in gTLDs generally, we urge you to support inclusion of language in cyber security legislation language that prevents ICANN from adding financial services gTLDs to the root zone unless the IANA contract specifies higher levels of security for such gTLDs.

The Federal Deposit Insurance Corporation, the US government body responsible for insuring banks, has also written to the Department of Commerce, expressing its concerns about the possible introduction of a .bank TLD.
Currently, I’m not aware of any public initiative to apply for .bank, but it’s possible that restrictions on financial services TLDs could capture the recently launched German “.insurance” project.
The BITS correspondence was published (pdf) as an attachment to an ongoing Reconsideration Request lodged by Michael Palage, chair of the High Security Top Level Domain Verification Program Advisory Group.
The HSTLD group has been working on a set of technological policy specifications for registries managing high-security TLDs.
Palage is annoyed that ICANN’s board seems to have distanced itself from the HSTLD concept before the group has even finished its work, by resolving in September that:

ICANN will not endorse or govern the program, and does not wish to be liable for issues arising from the use or non-use of the standard.

The HSTLD group, by contrast, has a “clear majority in support of ICANN retaining a continued oversight role”, according to Palage. He wrote:

The ICANN Board’s unilateral actions also have a chilling effect on future bottom up consensus efforts because participants have no basis to know when the ICANN Board will take such unilateral actions in the future.

He’s not alone in worrying about recent top-level ICANN decisions that appear to put corporate legal liability ahead of the wishes of the community. I reported on the issue last week.

Go Daddy objects to numeric .tel domains

Go Daddy has objected to Telnic’s plan to start selling numeric .tel domain names, saying that it, among other things, “smells a lot like gaming”.
Telnic applied to ICANN last month to revise its registry contract to enable it to start selling domains containing numbers and hyphens.
I speculated a month ago that the International Telecommunications Union might object to the proposal, for reasons I explained in some depth.
(Briefly, Telnic won the .tel sponsored TLD partly because it promised for years not to enable domains that could look like phone numbers.)
But the ITU had nothing to say, at least in terms of the ICANN public comment period.
Go Daddy’s Tim Ruiz did object last Saturday on related grounds, telling ICANN:

We believe that this request cannot be granted without requiring the rebidding of the .tel sTLD itself. It is unfair to other applicants and potential applicants to allow an sTLD to change its purpose after the fact.
…
Since community, purpose, and use were such important aspects of the sTLD allocation decisions it seems inappropriate, fundamentally unfair, and even smells a lot like gaming, to allow an sTLD to change those aspects without an opportunity for others to bid competitively.

In response to Ruiz’s letter, Telnic chief executive Khashayar Mahdavi wrote to ICANN:

The restriction on all-numeric strings has nothing to do with the nature of .tel and was instead a measure put in place to address initial concerns about potential conflicts with ENUM… We believe time and the growing understanding of the .tel technology have proven such a conflict does not exist.

ENUM is a protocol for addressing voice services using the DNS. It uses dots between each individual digit of a phone number, which would be specifically disallowed under Telnic’s plans.
Mahdavi also expressed confusion as to why Go Daddy bothered to object – it is not currently a registry, it does not carry .tel domains and it will presumably not be affected by the relaxation of the .tel rules.
Is it possible the registrar is taking a principled stance?
Ruiz also noted:

We believe that certain other recent requests under the guise of the RSEP [Registry Services Evaluation Process] by sTLDs were also likely inappropriate for similar reasons

He didn’t specify which sTLDs he was talking about. Without wishing to put words into his mouth, I can think of at least one that fits the description.
The Telnic proposal has already passed ICANN’s staff evaluation. I expect it could come before the board next month at its Cartagena meeting.
In separate news, Telnic’s less-controversial proposal to start selling one and two-character .tel domains has now passed its ICANN evaluation (pdf).

How “final” is the new TLD guidebook?

Many would-be new top-level domain registries were pleasantly surprised a week ago when ICANN published the latest Applicant Guidebook and referred to it as the “proposed final” version.
But it was pretty clear, even on a cursory reading, that the AGB is far from complete; in some cases, text is explicitly referred to as being subject to further revision.
There’s also a public comment period ongoing, providing feedback some of which will presumably be taken on board by ICANN at its Cartagena meeting next month.
But ICANN has now provided a little bit more clarity on how “final” the “proposed final” AGB really is.
Senior veep Kurt Pritz, ICANN’s point man on the new TLD program, had this to say on Thursday’s teleconference of the GNSO Council:

There are always going to be changes to the guidebook. And so, even though this is the proposed final guidebook, we’re doing some final work on trying to find areas of accommodation with the Recommendation 6 working group and making some changes there, and working through perhaps a registry code of conduct; there are perhaps some issues with data protection there.
If folks want to consider this as final it will have to be with the understanding that the guidebook will always be changing, but having an understanding that those changes really don’t materially change the positions of applicants or the decisions of whether or not to go ahead and apply or the resources necessary to apply or sustain registry operations.

I reported on some of the issues with the Rec 6 working group, which is dealing with the “morality an public order objections” process, earlier this week.
The registry code of conduct, which sets limits on what data can be shared in co-owned registries/registrars, was new in the latest AGB draft. It looks to me like the kind of thing you’d normally expect to be debated for many months before being accepted.
But apparently future changes to these parts of the guidebook will not be substantive enough to change potential applicants’ plans.
Pritz said on the GNSO call that the current public comment period, which ends on the day of the Cartagena board meeting, could be thought of as similar to the comment periods that precede votes on ICANN’s budget.
In those cases, the board votes to approve the budget subject to changes based on public comments in advance of those changes being made.
It seems to me that the board’s options in Cartagena are to a) approve the AGB, b) approve it subject to directed changes (the “budget” scenario), or c) delay approval pending further community work.
I’m guessing option b) is the preferred outcome, but there’s no predicting what surprises could emerge over the next few weeks.

Sponsor stonewalls .jobs critics

The sponsor of the .jobs top-level domain appears to be giving opponents including Monster.com a hard time as they continue to challenge the liberalization of the domain.
In its most recent ICANN filing (pdf), the Society for Human Resource Management said it does not want to meet with the .JOBS Charter Compliance Coalition and ICANN to help resolve their differences.
Last week, SHRM declined to given ICANN a straight answer when it asked whether jobs sites like Monster.com will be able to register domains under the new .jobs rules.
The Coalition of jobs sites was assembled to oppose the “Phased Allocation Program”, which allows .jobs registry Employ Media to allocate thousands of premium geographic and vocational domains to its partners.
While the program has already been approved by ICANN’s board, the Coalition has filed a Reconsideration Request appeal in an attempt to get the ruling overturned.
This week, Coalition lawyer Becky Burr sent a letter (pdf) to ICANN asking for a face-to-face meeting with representatives of ICANN, the Coalition, Employ Media and SHRM.
In response, SHRM general counsel Henry Hart said the organization “does not believe that it should participate in such a meeting.”
Last week, SHRM threw its full support behind Employ Media, tersely responding (pdf) to a list of ICANN’s questions relating to the registry’s plans for the domain.
ICANN’s reconsideration committee wanted to know whether the allocation program violated the .jobs charter by allowing registrants from outside the human resources community.
SHRM said it did not, but it did confirm that it does expect .jobs – which has so far been reserved for companies to list their own job vacancies – to be used in future for aggregated jobs sites operated by Employ Media.

Did the SHRM PD Council intend to enable the Registry (Employ Media) to register domain names in the .JOBS sTLD for the purpose of allowing third-party job postings on those sites? If so, please explain how this consistent with the .JOBS Charter.
Yes. The PD Council concluded, based on input from the Community, that this would serve the needs of the international human resource management community.

But when ICANN asked whether this means Monster.com, for example, would qualify, SHRM response was more vague.

Are independent job site operators (such as Monster.com) engaged in “human resources management” for the purpose of the definition set forth in the .JOBS Charter if the job site operator is advertising for jobs outside its own organization?
Independent job site operators provide a highly valued service to the international human resource management community.

The Coalition, in Burr’s letter, said the answers “simply ignore the responses sought by the direct questions of the [Board Governance Committee”.
Hart disputed this characterization of the answers.
Employ Media plans to allocate premium domains at first via an RFP process. It’s believed that the DirectEmployers Association is set to receive the lion’s share of the good domains for its universe.jobs plan.